Elon Musk’s name surfaces again in a discussion about Tesla and possible strategic moves in the Middle East, though recent reporting denies that the electric vehicle maker is negotiating with Saudi Arabia to set up a car assembly facility in the kingdom. The Wall Street Journal has published information suggesting that a Saudi offer was on the table, aimed at establishing a production site that would streamline access to metals and minerals critical for battery manufacturing. The report emphasizes cobalt and copper reserves in the Democratic Republic of the Congo and other sources as part of the broader supply chain considerations that drive such a potential project.
The story notes that talks between Tesla and Saudi authorities appear nascent and may not lead to a formal agreement. In the world of corporate strategy, early-stage discussions are common, yet they can stall or fall away entirely if the parties fail to align on economics, timelines, or regulatory approvals. Even as these conversations circulate, the public record shows a history of ongoing engagement rather than a concluded deal.
For years, Elon Musk has maintained a fluid relationship with leaders in Saudi Arabia, reflecting a pattern of high-level interactions that sometimes surface in social media and public statements. In 2018, Musk tweeted that the Saudi sovereign wealth fund, the Public Investment Fund, had shown interest in buying Tesla and potentially taking the company private. That assertion turned out to be inaccurate and subsequently drew scrutiny from the United States Securities and Exchange Commission, leading to settlements and legal considerations from shareholders who pursued action in court.
The kingdom is noted for its sizable stake in the social platform X, a venture Musk acquired in October of 2022. The influence of Saudi investment on Musk’s broader business ecosystem is a recurring topic in discussions about corporate governance and market strategy, particularly as it intersects with technology and energy sectors that rely on complex supply networks and strategic partnerships.
The Wall Street Journal’s reporting arrives at a moment when regional leaders and global executives weigh new possibilities for manufacturing footprints. The coverage coincides with a separate development: the Turkish president, Recep Tayyip Erdogan, has invited Musk to consider establishing a Tesla assembly plant within Turkey. This underscores a wider global ambition to expand production capacity beyond existing facilities, a response to growing demand and the desire to diversify manufacturing ecosystems.
Musk has consistently signaled an interest in increasing the number of Tesla assembly plants around the world as part of a long-term production plan that envisions tens of millions of vehicles produced annually by the end of the decade. The idea of multiple production hubs is tied to strategic objectives, including supply chain resilience, regional market access, and the ability to respond quickly to changes in demand and regulatory environments.
Another potential site that has surfaced in media discussions is Valencia, a Spanish town that has been mentioned as a possible location for a new Tesla plant. Reports from US media in January suggested that the prospect of Tesla arriving in Spain drew strong reactions from corporate leadership. The discussions reflect a broader trend of automakers pursuing geographic diversification to optimize production, reduce lead times, and tap into local incentives as well as skilled labor pools.